Are you wondering how to start a honey export business in India? Aside from the basic tasks of honey farming and packaging, various legal procedures must be followed. Keep reading to learn more!
India’s honey export business only began in 1991. However, honey exports have increased so much since then that India is now the world’s sixth-largest exporter of honey! For instance, India’s honey export has grown from US$ 56.2 million to US$ 100.8 in just the last decade and it is expected to grow further.
In this article, we will go over all of the important aspects of honey export from India. Mainly,
- Is there a demand for Indian honey?
- Legal requirements for starting a honey business in India
- Mandatory licenses and regulations to export honey
- How to export honey from India?
- How can Vakilsearch help?
Is There a Demand for Indian Honey?
Yes, there is a demand for Indian honey. Apart from the fact that India is the sixth-largest exporter and has made a name for itself in the international market, two other factors have increased the demand for Indian honey in recent times.
Firstly, there is a general increase in demand for honey across the world. This is a result of growing health consciousness and people’s inclination to avoid sugar and artificial sweeteners. Since honey acts as one of the common substitutes for sugar, it has witnessed an increase in demand. The growth of the internet is also a contributor to this shift.
Secondly, there is expected to be a surge in demand for honey in the post-pandemic era since honey is known to have anti-bacterial immunity-boosting effects.
Most importantly, India has a fair chance of leveraging the international political climate in general to its advantage in terms of exporting honey. So, if you want to export honey as a business, you have a good chance of doing so profitably.
Legal Requirements for Starting a Honey Business in India
As for every business, running a honey export business is also subject to legal regulations in India. To know which rules and regulations apply to you, here are a few things to consider:
- What type of product are you selling? Food or edible products. This attracts the Food Safety and Standards Authority of India (FSSAI) regulations and related certifications.
- How are you setting up your business? Depending on the type of business you are setting up (company or partnership), you need to register your business and follow the relevant rules. You will also be subjected to the tax laws of India.
- Where are you selling your product? This attracts the export laws of India like the Foreign Trade (Development and Regulation) Act and import laws of the countries you are exporting to. You also need to check the food standard-related laws of those countries too.
Now, don’t get demotivated by how complicated it all sounds. We are going to simplify them for you in the following sections. However, it is best to seek the help of legal professionals from Vakilsearch over a free consultation call to make sure that you are complying with all the necessary laws.
Mandatory Licenses and Regulations to Export Honey
- To run any food business in India you need to get an FSSAI Licence registration. This applies to exporting honey as well. Once you register with FSSAI, you get a license that is valid for 5 years and you can renew it after that.
- In case, you are choosing to label your honey as organic, you need to get an India Organic Certificate. This certificate can be obtained from NPOP or PGS-India. Only after this, will you be allowed to use the word ‘organic’ in your packing according to the FSS-Packaging and Labeling Regulations, 2011.
- Following that, you need to register with DGFT to be able to import and export goods in India.
- Comply with the import regulations of the countries that you are exporting to and obtain the licenses needed in that regard. Codex Alimentarius Commission (CAC) is the authority that lays out standards for honey. Most countries accept honey according to this standard while some countries like the US and UK have slightly stricter standards.
How to Export Honey from India
Here is a quick summary of the whole process from setting up a honey business to exporting the honey abroad.
- Start by registering your business as either a start-up or under MSME Udyog Aadhaar.
- Go through all the basic requirements like tax registration and trademark registration.
- Follow FSSAI guidelines while developing your product and get FSSAI certification.
- Also, follow CAC standards while producing your honey. Look for any other laws that might regulate the honey import or food products in general in the country you are exporting to.
- For hassle free exporting, apply for DGFT registration in India.
- To set up the infrastructure for customs handling and clearance, contact a customs agent.
- Find a buyer or a distributor in the country that you are planning to export to and negotiate a contract with them.
- Obtain all the health certificates and labels you need for the product to be exported.
- Finally, get clearance from the country you are exporting to.
How You Can Get Assistance from VakilSearch
As you can see, there are a lot of legal requirements and processes involved in setting up a honey export business in India. This can be tiring and stressful.
That is why we recommend that you delegate these to legal experts in Vakilsearch so that you can focus on other pressing aspects of your business. Here is how we can help you:
- Depending on what sort of business you are deciding to set up, we can take care of the registration process.
- Our team of experts will then help you identify all the licenses and regulations that you need for your honey export business.
- We will also take care of all the registrations that need to be done in India such as getting tax registration, obtaining an FSSAI license, customs handling, etc.
- Our experts will then draft an airtight contract for your trading partners and help you stay compliant!
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